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A Chicago casino has resolved a lawsuit after two potential investors alleged that the establishment enforced a policy barring White men from participating in investment opportunities.
Bally’s Chicago, expected to become Illinois’ largest casino with a 500-room hotel and a 3,000-seat theater, faced criticism for allegedly excluding White males from its $250 million initial public offering. This situation arose in the context of its Host Community Agreement with the City of Chicago.
Set to open in 2026, this $1.7 billion casino and resort became the target of a lawsuit led by the Wisconsin Institute for Law and Liberty. The lawsuit was filed on behalf of investors Richard Fisher and Phillip Aronoff, as well as the American Alliance for Equal Rights.
Under the conditions of the community agreement, formed in accordance with a 2019 Illinois state law that expanded gambling in the state, Bally’s committed to ensuring that 25% of the ownership would be held by minorities and women. To qualify for the IPO, investors needed to meet specific criteria outlined in Bally’s Class A Qualification Criteria, which required investors to be from these groups.
Bally’s began accepting deposits from approximately 1,500 investors starting in December. However, by February, those deposits were refunded since the Securities and Exchange Commission had not yet approved the IPO, as reported by the Chicago Sun Times. In April, the casino removed the contentious ownership provisions from the IPO; however, a preference was still stated for investors to be from the Chicago area.
WILL, the legal organization representing the investors, claimed that Bally’s actions contravened the Civil Rights Act of 1866, which prohibits racial discrimination in contracts, the first Ku Klux Klan Act, and a considerable body of Supreme Court precedent. Following the settlement, the organization expressed satisfaction with the outcome.
Dan Lennington, managing vice president of WILL, commented that this decision represents a significant victory for equality. He stated that Bally’s decision to eliminate the discriminatory requirement now allows for a more inclusive investment opportunity. This change has been confirmed in documents filed with the SEC, where it was stated that the investment will now be accessible to all.
Patrick Callahan, a Chicago attorney previously hindered from investing in the casino, expressed approval of the settlement but maintained a cautious outlook regarding the city’s future stance on nondiscrimination.
He remarked that under the present leadership, there was little impetus to believe that Chicago could transform into a leader of equal opportunity. Nevertheless, he acknowledged that this settlement marks a considerable triumph and hoped it would herald further victories in the future.
As this situation unfolds, Fox News Digital has sought comments from Bally’s representatives, the Chicago mayor’s office, and the Illinois Gaming Commission regarding the implications of this settlement.
Implications for Future Investments
The resolution of this lawsuit is likely to have far-reaching implications for future investments in Chicago as well as across the state of Illinois. As more businesses seek compliance with state laws governing equitable investment practices, the landscape could shift significantly.
Furthermore, the outcome may prompt additional scrutiny of policies that appear to favor certain demographic groups over others. Legal experts anticipate that further challenges may arise concerning investment opportunities and ownership laws in the gaming industry and beyond.
Community Response
Community reactions to the settlement have been mixed. While some individuals are joyous about the shift towards inclusiveness in investment opportunities, others remain skeptical about the true motivations behind such changes.Â
Critics continue to raise questions regarding whether structural transformations within the gaming sector will materialize or if this development merely represents a surface-level adjustment to appease public dissent.
As the controversy surrounding Bally’s progresses, it underscores the broader conversations resurfacing throughout the nation regarding race, equity, and investment practices. Public interest remains high as more developments unfold, and stakeholders are poised to monitor the effects on investment dynamics going forward.
Looking Ahead
The future of Bally’s Chicago and its investment landscape could set a precedent for other businesses across various sectors. As the casino prepares for its opening two years hence, how it implements changes in its investment policy will be crucial for its reputation and operational success.
Ultimately, this case illustrates the complexity of balancing community agreements with legal obligations. Moving forward, the response from investors and the community will determine the trajectory of inclusivity and equity in Chicago’s burgeoning casino industry.
